Despite the overall positive retail atmosphere this holiday season, the jewellery sector experienced a 2% decline in sales, according to recent data from Mastercard SpendingPulse. While U.S. retail sales, excluding automotive, saw a 3.1% increase from 1st November through 24th December compared to the previous year, jewellery did not follow suit.
The consumer spending pattern was influenced by a favourable economic backdrop marked by healthy job creation and easing inflation pressures. However, this did not translate into increased sales for jewellery retailers.
Online retail sales surged by 6.3%, outpacing in-store sales which grew at a more modest rate of 2.2%. Despite the dip in jewellery sales, other sectors like apparel enjoyed a boost of 2.4%, and restaurants saw an impressive growth of 7.8%.
“This holiday season, the consumer showed up, spending in a deliberate manner,” said Michelle Meyer, Chief Economist, Mastercard Economics Institute. “The economic backdrop remains favourable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most.”
“Retailers started promotions early this season, giving consumers time to hunt for the best deals and promotions,” said Steve Sadove, Senior Advisor for Mastercard and Former CEO and Chairman of Saks Incorporated. “Ultimately it was about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic.”